Hospitality no laughing matter

COMPUTERSHARE founder and chairman Chris Morris has amassed a $100 million-plus portfolio of hospitality assets.

Hospitality no laughing matter

FROM a luxury resort island in Queensland to a string of gastro-pubs in Melbourne and Perth, Computershare founder and chairman Chris Morris has amassed a $100 million-plus portfolio of hospitality assets.

But in the process the entrepreneur, one of the nation's largest private pub landlords, has discovered just how tough hospitality is.

"Operating hospitality and resorts is the hardest business I have ever known; it is very competitive," says Morris, who owns 10 Melbourne pubs, a Perth brewing house and north Queensland's luxurious Orpheus Island.

The Melbourne-based entrepreneur has just won approval to build a brewery at Cape Schanck on Victoria's Mornington Peninsula, where he has a 120ha holding growing organic food for his pubs. Offshore, he controls a historic castle in Britain.

Morris, who employs 1200 staff through his privately held Colonial Leisure Group, says the pub business has a high failure rate because of competition from entertainment venues, restaurants and classy city bars.

"The days of the corner hotel are basically gone, unless you have poker machines. I refuse to have them because they are immoral. I've got nothing against casinos or gamblers but when pokies are in every corner pub -- sometimes that's the end of the (family's) weekly income."

Despite the challenges Morris continues to amass pubs, aviation businesses and luxury resorts. Because he can.

He founded Computershare in 1978 and it employs 16,000 people globally. He says that it is "Australia's most successful IT company".

"I am still the largest shareholder of Computershare, which manages more assets than any other company in the world."

Morris bought his first hotel in 1999, Melbourne's Portsea. In 2008, he bought the Empire Brewing Company, including a brewery in Margaret River and Perth's Royal Hotel.

A year later he bought the pub assets of the collapsed Cornerstone group.

Asked if he turns a profit from the pub business, Morris says: "I don't lose money. I have spent money to get to a profitable stage. Now we have a fairly good stable of hotels that are making money. I am in the fortunate position that I don't have any debts."

Despite his large hospitality portfolio Morris is unlikely to attempt a public listing.

"It's a tough enough business without being listed. History tells us that most hotel groups that have listed have gone broke."

But he does not rule out buying more hospitality assets.

"If there are opportunities that arise that fit the profile, I would definitely be interested in buying a more unique resort."

He is not afraid of maintenance costs. He will fork out about $500,000 to upgrade the Daintree Eco Lodge & Resort near Port Douglas that he bought last week, saying: "I am paranoid about beds. Upgrading the beds is one of the things we will do immediately."

He expects to spend up to $5m renovating the resort eventually.

"I never thought I would buy Daintree Eco Lodge, but it fits in beautifully with Orpheus. If there was (another property) that fitted in with Daintree and Orpheus, then absolutely I would buy it, but I wouldn't go out and buy a motel (for instance)."

Central to CLG's success is the ability to move staff between Melbourne, north Queensland and Perth, Morris says.

Like most island owners CLG has difficulty retaining staff long term. "They get island fever. That is the biggest problem."

Once Daintree is in operation Morris will move staff from Orpheus Island, just off Townsville, for a break. Staff who have toughed it out at Morris's Melbourne's pubs during the city's bleak winters will be moved to north Queensland to work.

"We move them from the island down to our other hospitality venues because people get island fever -- that is the biggest problem. People are isolated on an island."

Morris is not planning to brand his pubs under the one name.

"We don't run under a brand name. We are not the Mantra Group. Every hotel and venue has its unique characteristics. We are different from the Americans (who are into branding)."

Since his purchase of Nautilus Aviation, which operates from Cairns and Townsville, Morris has spent more than $10m buying new aircraft, including a B407 and two EC120s, building its fleet to 10.

The helicopter service will connect Daintree with Orpheus Island as well as flying tourists over the Great Barrier Reef.

Morris also owns the historic castle in Portland, Dorset. "I used to walk past it and I saw it was for sale. I put in a ridiculous bid for it and I had to buy it. I have great people running it."